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1 pts Question 29 Crockett Corporation's 5-year bonds yield 6.35%, and 5-year T-bonds yield 4.45%. The real risk-free rate is r* 3.80%, the default risk
1 pts Question 29 Crockett Corporation's 5-year bonds yield 6.35%, and 5-year T-bonds yield 4.45%. The real risk-free rate is r* 3.80%, the default risk premium for Crockett's bonds is DRP - 1.00% versus zero for T-bonds, the liquidity premium on Crockett's bonds is LP - 0.90% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP - 0.1%{t - 1)x. where t-number of years to maturity. What inflation premium (IP) is built into 5-year bond yields? O 0.21% 012990 ON 0.2096 0.3 19. 01259
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